MONDAY, MAY 27, 1985
DEAK PERERA FAR EAST LIMITED (IN LIQUIDATION)
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RESPONDING TO ENQUIRIES FROM ITS METAL TRADING CUSTOMERS THE REGISTRAR GENERAL, MR NOEL GLEESON, TODAY RELEASED THE FOLLOWING STATEMENT CONCERNING THE FORMER PRECIOUS METAL TRADING BUSINESS OF DEAK PERERA FAR EAST LIMITED (DPFE).
DPFE FORMERLY CARRIED ON THE BUSINESS OF PRECIOUS METAL TRADING AND PROVIDED A STORAGE SERVICE FOR CUSTOMER'S METAL HOLDINGS. THE METAL TRADING DIVISION WAS OPERATED LARGELY INDEPENDENTLY OF THE REST OF THE DPFE'S BUSINESS AND APPEARS TO HAVE BEEN CONDUCTED PROFESSIONALLY AND EFFICIENTLY.
AT THE TIME THAT DPFE WENT INTO LIQUIDATION, LARGE QUANTITIES OF METAL, HAVING A TOTAL VALUE AT PRESENT OF ABOUT $40M., WERE AND STILL ARE STORED IN FIVE BANKS IN HONG KONG, UNITED STATES, LONDON, SWITZERLAND AND AUSTRIA. THEY REPRÉSENT THE HOLDINGS OF SOMÉ 600 CUSTOMERS, MANY RESIDENTS OF HONG KONG AND MANY OVERSEAS. THOSE BANKS NOW HOLD THE METAL TO THE ORDER OF THE OFFICIAL RECEIVER AS LIQUIDATOR OF DPFE.
AFTER LIQUIDATION, QUESTIONS OF OWNERSHIP OF THE METAL AROSE AND IT APPEARED FOR SOME TIME THAT THERE WAS A PROSPECT OF A CHALLENGE TO THE METAL CUSTOMERS' OWNERSHIP CLAIMS. IN THE END THE CHALLENGE DID NOT MATERIALISE AND THAT QUESTION HAS NOW BEEN RESOLVED BY A DIRECTION FROM THE HIGH COURT IN FAVOUR OF THE METAL CUSTOMERS.
IT NOW REMAINS FOR THE OFFICIAL RECEIVER TO DISCHARGE THE OBLIGATIONS OF DPFE TO ITS METAL CUSTOMERS. IN VIEW OF THE NUMBERɔ AND COUNTRIES OF RESIDENCE OF THE CUSTOMERS AND THE QUANTITY AND LOCATIONS OF THE METAL, IT HAS BEEN CONCLUDED THAT THE BEST SOLUTIO WILL BE FOR ANOTHER METAL TRADING COMPANY TO ACT AS THE OFFICIAL RECEIVER'S AGENT SO THAT THE DPFE METAL CUSTOMERS' REQUIREMENTS, WHETHER TO SELL, TAKE POSSESSION OF OR TRANSFER SAFE CUSTODY OF THE METAL TO THE NEW COMPANY CAN BE MET.
WITH THAT OBJECTIVE IN MIND, THE OFFICIAL RECEIVER HAS REACHED AN ADVANCED STAGE IN NEGOTIATIONS WITH A HONG KONG COMPANY WHICH INTENDS TO ESTABLISH A PRECIOUS METAL TRADING SCHEME. THAT COMPANY HAS EMPLOYED SOME OF THE FORMER DPFE METAL TRADING MANAGERS WHO ARE FAMILIAR WITH THE FORMER DPFE CUSTOMERS, THE IR METAL HOLDINGS AND THE NET-WORK OF BANKS WHICH ACTED IN THE PURCHASE AND SALE OF METAL AND AS SAFE CUSTODIANS.
TO THE EXTENT THAT IT WILL BE NECESSARY FOR THE OFFICIAL RECEIVER TO AUTHORISE THE NEW COMPANY TO DEAL WITH THE EXISTING METAL STOCKS, VARIOUS SAFEGUARDS, INCLUDING A BANK INDEMNITY, WILL BE ARRANGED TO PROTECT THE OWNERS' INTERESTS, METAL CUSTOMERS WILL BE NOTIFIED AS SOON AS THE NEGOTIATIONS WITH THE NEW COMPANY HAVE BEEN CONCLUDED AND THE NEW COMPANY IS IN A POSITION TO DEAL WITH THEM,
FINAL AGREEMENT ON THIS WILL ALSO BE SUBJECT TO THE NEW COMPANY OBTAINING THE NECESSARY CONSENTS FROM THE COMMISSIONER FOR COMMODITIES TRADING UNDER THE COMMODITIES TRADING ORDINANCE.
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